Online Gambling Lawsuit Verses Alberto Gonzales Making Waves

iMEGA has made a splash in a very short time, with its suit challenging the Unlawful Internet Gambling Enforcement Act (UIGEA) in US Circuit Court vs. Alberto Gonzales (3rd District - New Jersey).

The filing quickly made news in technology, legal, political and gaming industry circles (see links below). Many articles noted iMEGA's emergence from "obscurity" to become a plaintiff in a suit challenging a law intended to target the internet gambling industry, but using restrictions and increased regulation of US banking and credit card systems to achieve the end of preventing operators and players from engaging in play.

iMEGA maintains that its interest in challenging the law stems from the chilling effect it will have on innovation, as well as freedom within existing and future online communities.on, Jr."

Cassimir Medford, a Senior Editor of Red Herring, covered the iMEGA story.

iMEGA has a good shot at blocking the law, according to Internet attorney Lawrence Walters of law firm Weston Garrou Dewitt & Walters. Mr. Walters considers the law to be seriously flawed.

iMEGA, which said it represents a number of companies involved in online gambling and other forms of online entertainment, filed the lawsuit against embattled U.S. Attorney General Alberto Gonzales.

The lawsuit, which was filed in U.S. District Court in New Jersey, challenges the UIGEA on a number of constitutional grounds and seeks an immediate court injunction blocking enforcement of the law.



“We think the law infringes on the First Amendment and Tenth Amendment rights of our members,” Edward Leyden, iMEGA’s president, told Red Herring's Cassimir Medford. “And we also believe the government has exceeded its authority in its WTO dispute with Antigua and that too has harmed our clients.”

The World Trade Organization in April ruled in favor of government of Antigua & Barbuda that the U.S. ban on online gambling violated the General Agreement on Trades and Services treaty.

Medford also emphasizes what Gambling911.com reported as well in regard to the anonymity factors with iMEGA.
 

iMEGA refused to divulge the names of its members in part because of the perceived possibility of legal retribution as a result of the lawsuit. Providing the government with a list of firms involved in some form of Internet gaming, it thought, could open the individuals up to indictments and arrest.

“It’s the nature of the issue at hand, and the nature of an entity which can take punitive action against the members,” said Eric Bernstein, iMEGA’s attorney. “There have been many other instances where groups bringing lawsuits against the government have not disclosed the identities of their members.”

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Related Articles:

Politicians Want to Police the Internet: Barack Obama Among Them
US Government Receives Summons Regarding UIGEA Complaint
Internet Freedom Site Pushes Forward With Online Gambling Agenda
Internet Gambling Prohibition has Long Term Ramifications for World Wide Web
Alberto Gonzales Lawsuit Could Set Precedent
Antigua And Barbuda Readies Sanctions Against US
Costa Rica Will Join Antigua, Japan, India, EU re: US Online Gambling Case
Online Gambling Crisis Comes to a Head
US Concedes Defeat in WTO Online Gambling Case with Antigua
Antigua Disappointed with US Response to WTO Online Gambling Decision
China Lashes Out at Bush Administration Over WTO Complaint
YouTube Case in Thailand Parallels US Online Gambling Policy
US Must Abide by WTO Online Gambling Decision
WTO Antigua Ruling Verses US: Online Gambling Bill Illegal
Antigua is the Smallest Country to Successfully Litigate WTO Case

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Christopher Costigan, Gambling911.com

Originally published June 25, 2007 7:44 pm ET